Sales for the Full Year 2020/21 - ending 31 March 2021 - APRIL 23rd, 2021 - Rémy Cointreau
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Sales for the
Full Year 2020/21
e n d i n g 3 1 M a r ch 2 0 2 1
A P R I L 2 3 rd, 2 0 2 1
2020/21 Sales : Key Messages
• A year impacted by the COVID-19 pandemic:
‒ Collapse in duty free sales (along with international airline traffic)
‒ Partial closure of the on-trade channel (bars and clubs particularly) significantly impacting sales in Europe (with
new lock downs in Q4) and in many markets of South-East Asia, Africa and LatAm
‒ Booming at-home consumption in several markets including the US, the UK and Australia
‒ Mainland China is “back to normal” with off and on-trade channels having both normalized since summer 2020
• Strong resilience of the Group: FY2020/21 organic sales up 1.8%, implying ongoing strength in Q4
(+15.1%) after a strong Q3
‒ Q4 mitigated by strategic inventory management in the US
‒ Phasing effect that will be favorable for Q1 2021/22
• FY2020/21 value depletion trends showed strong growth, well above sell-in trends
‒ Americas: very strong double-digit growth in the US, driven by booming at-home consumption combined with
uptrading trends. Good annual performance in Canada while LatAm was strongly impacted by the lack of tourism
‒ Asia Pacific: strong trends in Mainland China and Australia/New Zealand partially offset by lingering weakness in
the rest of South-East Asia and in Japan
‒ EMEA: general weakness across the region. Within that context, a few markets enjoyed positive depletion trends,
including the UK, Benelux, Switzerland and Germany
‒ Global Travel Retail: depressed trends across all regions; sequential H2 improvement in GTR Asia led by Hainan
• Increased confidence in Group’s 2020/21 COP outlook:
‒ FY2020/21 sales performance slightly above internal expectations
‒ Current Operating Profit now expected to grow around +10%, in organic terms 2
2020/21 Sales Analysis
2019/20 Organic Currencies Scope 2020/21
Reported decline : -1.4%
€1024.8m +1.8% -3.5% +0.3%
€1010.2m
3
Currency Impact on 2020/21 Sales
Currency translation loss of 36.3 million euros
€m
Main gains Main losses
CHF TWD
+0.1 +0.1
GBP CAD
-0.8 -0.9 Other currencies
-1.5 RUB
-2.6 CNY
-4.6
USD
-26.1
4
Quarterly Organic Sales Growth
FY18/19: +7.8% (RC Brands: +9.8%) FY19/20: -11.2% (RC Brands: -6.3%) FY 20/21: +1.8% (RC Brands: +1.9%)
Q1 18/19 Q2 18/19 Q3 18/19 Q4 18/19 Q1 19/20 Q2 19/20 Q3 19/20 Q4 19/20 Q1 20/21 Q2 20/21 Q3 20/21 Q4 20/21
30% 26,5%
25,1%
20%
15,1% 15,0%
12,8%
9,1% 8,9%
10% 8,8% 8,7%
7,0%
8,2%
5,9%
3,3%
2,5%
0%
-3,0%
-4,0% -4,0% -4,7%
5.9%
-10% -7,2%
-11,3%
-20%
-22,3%
-25,4%
-30%
-33,2% -33,5%
-40%
Organic sales growth -- Group Organic sales growth -- RC Brands 12M trend - RC Brands
5
2020/21 organic sales trend by region
Americas Asia Pacific EMEA Group
22% 18.6%
18%
14%
10%
6%
1.8%
2%
-2%
-6% -4.5%
-10%
-14%
-18%
-22%
-21.7%
6
2020/21 Organic Sales Trends by Region
Americas organic sales up 18.6%, led by an outstanding performance in the US
US: strong double-digit sales growth in FY, led by most brands
Based on Nielsen data, Remy Cointreau was the number 2 fastest growing spirits brand owner within the top 20 suppliers in the 12-month period ending
March 2021, driven by impressive at-home consumption and strong appetite for our spirits.
Group Brands’ value depletions over the FY period substantially outpaced sales growth :
+33.2% over 3M, +47.5% over 6M, +52.5% over 12M
Canada : slight sales decline in the FY, despite good depletion trends, led by Cointreau, St-Rémy and Rémy Martin (encouraging catch-up in Q4)
LatAm : continued double-digit decline due to weak domestic consumption and a fall in tourism
Very poor performance of the Travel Retail channel
Asia-Pacific organic sales down 4.5%, including very strong double-digit growth in Q4
Greater China sales up double-digits in FY, boosted by triple-digit growth in Q4:
FY performance was led by strong double-digit growth in Mainland China and good momentum in Taiwan, while HK and Macau were very weak
5.9%
Q4 sales benefited from the later Chinese New Year (February 12th 2021 vs. January 25th 2020): circa €8M shipments were postponed into Q4
Mainland China: value depletions were up strong double-digits in FY, including an excellent Chinese New Year performance in Q4, for both our
cognacs and Scottish single malt whiskies.
Mainland China: consistent sales growth across all channels of distribution (direct/indirect) in FY
Double-digit decline in South-East Asia in the FY : strong performance in Australia and New Zealand was offset by significant weakness in other
markets (on-trade closed or under strict social distancing restrictions, borders still closed for some markets).
Travel Retail Asia : sequential improvement driven by Greater China (Hainan) in H2, but still weak overall
EMEA organic sales down 21.7%, despite a fairly resilient Q4 in domestic markets
The FY decline was largely driven by Africa, Central and Western Europe and the Travel Retail channel
A few markets enjoyed positive sales and depletion trends in the FY: The UK, Switzerland, Benelux and Germany
7
2020/21 Organic Growth by Division
Cognac Liqueurs & Group Partner Total
Spirits Brands Brands Group
3.7%
4%
3%
1.9% 1.8%
2%
1%
0%
-1%
-1.5%
-2%
-3%
-3.2%
-4%
8
Cognac (+3.7% OSG in FY)
Americas
Strong double-digit sales growth in FY, driven by an excellent performance in the US while Canada, LatAm and Travel Retail declined
Outstanding US cognac depletion trends continued into Q4, despite strategic inventory management (in particular on 1738)
Value depletions: price/mix slightly negative in the 12M period ending March 2021, due to unfavorable product and state mix
Volume depletion trends to March 2021
3 months 6 months 12 months
Cognac market Nielsen +24.8% +25.0% +33.2%
Cognac market NABCA +25.1% +35.9% +40.6%
Cognac market NABCA/Discus +30.7% +40.2% +29.2%
Rémy Martin +33.0% +57.5% +64.4%
Source: Nielsen, NABCA, Discus, Rémy Cointreau
Asia-Pacific
Greater China: triple-digit organic sales growth in Q4 drives double-digit growth in the FY
Mainland China enjoyed triple-digit sales trends in Q4 (including an estimated €8M shipment timing from Q3 into Q4, due to the later CNY), led
by a very strong Chinese New Year performance, across our cognac portfolio
Macau (where casinos and hotels have reopened) should benefit from improved trends going forward, while HK is experiencing lower declines
Japan returned to growth in H2, while South-East Asia remained penalized by on-trade restrictions and closed borders
Despite ongoing weakness, Travel Retail Asia showed a sequential improvement in H2, thanks to initial business in Hainan
Europe, Middle East & Africa
Strong double-digit decline, led by weakness in most markets as well as in Travel Retail EMEA
The UK enjoyed strong growth across the year, while good momentum in Switzerland and Russia was driven by a significant pick-up in H2
9
La « Maison Rémy Martin » Guangzhou in China
10Rémy Martin VSOP Mixtape Limited Edition in the US
11Liqueurs and Spirits (-3.2% OSD in FY)
Cointreau
Strong FY performance, led by double-digit sales trends in H2: double-digit growth in the US, Australia, the UK, Russia and
Benelux, was mitigated by weakness in the rest of Europe, in China and in Travel Retail
In the US, the boom in at-home mixology (success of the original Margarita cocktail) largely offset the on-trade weakness:
Depletion trends accelerated further in the last 3M (+34.2%), led by the re-opening of the on-trade and the benefits of the Super Bowl ad
Value depletions: price/mix effects of +6pp in the 12M period ending March 2021, led by favorable product size mix
Volume depletion trends to December 2020
3 months 6 months 12 months
Cordials market Nielsen +18.3% +16.2% +25.3%
Cordials market NABCA +4.9% +7.9% +4.6%
Cordials market NABCA/Discus +12.2% +6.1% -0.3%
Cointreau +34.2% +24.2% +24.3%
Source: Nielsen, NABCA, Discus, Rémy Cointreau
Metaxa
Double-digit organic sales decline led by the shortfall in Global Travel Retail and a poor performance in Central and Western Europe
Strong performance in Eastern Europe and in Germany
Mount Gay
Low double-digit organic sales decline driven by weakness in the Barbados and in Travel Retail; strong growth in the US and the UK
St-Rémy
Low double-digit organic sales decline driven by the shortfall in Global Travel Retail and weakness in Africa, while the brand enjoyed
strong momentum in the US and a good performance in its key Canadian market (depletions +8%)
The Botanist
The solid H2 sales rebound (led by the US) did not fully offset the H1 shortfall and ongoing weakness in Travel Retail
Single-Malt Whiskies
Double-digit sales growth across all three macro-regions more than offset ongoing weakness in Global Travel Retail sales
Excellent performance of the portfolio during the Chinese New Year 2021 12Cointreau: The “Love Letter” during Super Bowl
13Outlook
Increased confidence in the 2020/21 Outlook….
Full-year 2020/21 sales slightly above internal expectations
Current Operating Profit now expected to grow around +10%, in organic terms
Currencies and Scope now expected to reduce COP by 5.0 M€ (vs. 8.0M€
previously) and by 2.0M€ (unchanged), respectively
…as well as in 2021/22 prospects
The group anticipates a strong start to 2021/22, supported by a very
favourable base of comparison, shipment phasing benefits and structurally more
buoyant consumer trends in the United States
14Q&A
You can also read
